MBIE seeking feedback on rules for payment services

“Payment services help people and businesses make and receive payments and are a core part of our financial system,” says Jenna Reid, MBIE’s acting general manager, commerce, consumer and business policy.

“In the past, this may have included Eftpos, credit cards, cheques and cash. Today, there are many new and innovative alternative payment options available.

“For consumers, payment services might now mean using a digital wallet to buy their morning coffee or using an app to transfer money from their bank account to their plumber’s. For businesses, it could be the platform they use to take online payments or pay their staff.

“Given how much payment services have changed in recent years, it’s timely to look at the rules covering the businesses that provide them. These include banks and non-bank businesses like fintechs.”

MBIE is asking for public feedback on questions including:

• Do the current rules around payment services support competition and innovation or are they creating unnecessary barriers?
• Are the current protections for consumers and businesses clear and fit for purpose?
• Do newer payment models such as the use of digital tokens like stablecoins raise issues the current rules don’t address?

The Finance and Expenditure Committee’s inquiry into banking competition and the Commerce Commission’s market study into personal banking services highlighted the importance of reducing barriers to newer payment providers to help boost competition and give New Zealanders more choice.

“A barrier may be the array of rules for providers, which can be hard for newer businesses to navigate. Payment services are covered by multiple different laws and rules, and providers have been asking for more clarity and consistency,” says Jenna Reid.

MBIE’s consultation on whether payment services rules are clear and work for businesses and consumers will run for 6 weeks and close on 3 July.

For more information and to have your say, visit:

Payment services regulation